- Solana trades just 20% below its all-time high after breaking key resistance levels, with indicators pointing to further gains.
- Analysts predict SOL could soon surpass its previous record, supported by bullish wave counts and strong market structure.
Solana Breakout After Months of Consolidation
Solana (SOL) is back in the spotlight, with its price climbing close to the $250 resistance zone. Now trading just 20% below its all-time high (ATH), the token’s steady rally since April has reignited bullish optimism. After a sluggish July and August, last week’s breakout flipped the narrative, confirming that bulls have regained control.
This rally began when Solana reclaimed the $120 support level in April, marked by a bullish engulfing candlestick. Another strong move followed in June, reinforcing support and setting the stage for higher levels. For months, SOL traded within an ascending wedge, capped by resistance at $200. The decisive breakout above this level now leaves little standing in the way of a potential retest of record highs.
Indicators Point Toward Further Upside
Momentum indicators continue to favor buyers. The Relative Strength Index (RSI) is climbing toward 70, a level often associated with rapid upward movements. At the same time, the Moving Average Convergence/Divergence (MACD) has flipped into positive territory without signs of bearish divergence. This technical setup aligns with the bullish structure, suggesting that Solana could be entering the steepest phase of its rally.
Wave count analysis further supports this outlook. According to Elliott Wave theory, Solana is currently in the fifth and final wave of an upward trend that began in December 2022.
After confirming the start of this wave in April, the current move suggests SOL could target between $416 and $464, levels projected through Fibonacci extensions.
Comparison With Avalanche (AVAX)
Interestingly, Avalanche (AVAX) shows a similar bullish setup. While AVAX trades far below its ATH, it has also broken long-term resistance and entered sub-wave three of wave three, historically the fastest phase of rallies. Analysts predict AVAX could reach $48.10 before a retracement, mirroring Solana’s structure but on a smaller scale.
With Solana trading only 20% below its ATH, the next few weeks could prove decisive. The breakout above $200, strong technical indicators, and favorable wave counts all suggest SOL has the potential to push beyond its previous record. If bulls maintain pressure, a new all-time high may arrive sooner rather than later, positioning Solana as one of the strongest performers in the crypto market.
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. Readers are encouraged to conduct further research and consult additional sources before making any decisions based on the content provided.
About the Author
